Today the Greed Index is 76, indicating a rational bullish state. It hasn't reached the crazy bullish level of 90 yet. I remember last year when the price reached 105,000, the Greed Index soared to 90! Over the years, I have generally followed this indicator for the big trends. The only time I broke this habit was during Trump’s presidency; I went against it and heavily invested, which led to a massive liquidation after last year.

The method is quite simple, let me share it with you.

When the Greed Index reaches extreme greed at 90, on the daily chart, draw a line at the highest price point, using this price as a sell signal, meaning that once the price exceeds this line, I will reduce my position on the highs. However, based on the past few years of experience, once the Greed Index exceeds 90, it will enter the final frenzy state, and the price will continue to rise as if it has taken a spring tonic. Entering the final feast!

Generally, I am using the RSI indicator on the daily chart, and when it is overbought at 80, I will reduce my position to only 20% for betting on the final peak. Then I start to short with a Martingale strategy, shorting on the highs and gradually building a short position.

When the Fear Index enters extreme fear at 10, I similarly draw a line at the lowest price point that spans the entire chart, using this price as a buy signal. From then on, as long as the price drops below this line, I will short and reduce my position on the lows. Similarly, I will also start to go long and gradually build my long position.

I usually wait for the RSI to be oversold at 20 on the daily chart, and then I will short until I only have 20% left. Then I will start the Martingale strategy to go long.

Over the years, as long as I follow this pattern, I haven't encountered major issues.

Instead, every time I go against this rule to chase longs or shorts, I incur the most significant losses.

In trading, it’s impossible to buy at the lowest point and sell at the highest point; that’s unrealistic.

Moreover, the dealer's layout is always long-term.

There’s a saying: bulls kill bulls, bears kill bears. This means that after bulls become greedy, they will become extremely greedy again. After bears experience fear, they will become extremely fearful.